Illinois Real Estate Practice Exam

What is the amount of real estate tax due on a property with a market value of $140,000 if it is assessed at 30% of market value, has an equalizer of 1.5, and a tax rate of $5.00 per $100.00 of assessed value?

1. $3,150

2. $4,000

3. $3,500

4. $5,500

The correct answer is: $3,150

To determine the real estate tax due on the property, we need to follow a series of calculations based on the provided information about the market value, assessment ratio, equalizer, and tax rate. First, we calculate the assessed value of the property. The property has a market value of $140,000, and it is assessed at 30% of this market value. Therefore, the assessed value is calculated as follows: Assessed Value = Market Value × Assessment Ratio Assessed Value = $140,000 × 0.30 = $42,000 Next, we apply the equalizer to the assessed value. The equalizer adjusts the assessed value to ensure fairness in taxation and takes into account any discrepancies in property assessments. In this case, the equalizer is 1.5: Adjusted Assessed Value = Assessed Value × Equalizer Adjusted Assessed Value = $42,000 × 1.5 = $63,000 Now we arrive at the property’s adjusted assessed value of $63,000. The next step is to calculate the actual tax due based on the tax rate, which is given as $5.00 for every $100.00 of assessed value. To find the tax, we can